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Revolving Promissory Note Template for Singapore

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Key Requirements PROMPT example:

Revolving Promissory Note

"Need a Revolving Promissory Note under Singapore law for a maximum facility amount of SGD 2 million, with quarterly interest payments and a maturity date of March 15, 2025, to be used for our manufacturing subsidiary's working capital needs."

Document background
The Revolving Promissory Note is commonly used in Singapore for establishing flexible credit arrangements where borrowers need ongoing access to funds. It provides a more structured alternative to traditional loans while maintaining flexibility in drawdown and repayment. This document type is particularly useful for businesses requiring working capital facilities or ongoing credit lines. Under Singapore law, it combines elements of both promissory notes and revolving credit facilities, offering the security of a negotiable instrument with the flexibility of revolving credit. The document typically includes details of the maximum facility amount, interest calculations, drawdown mechanisms, and repayment terms.
Suggested Sections

1. Date and Parties: Identification of maker and payee, including full legal names and addresses

2. Promise to Pay: Unconditional promise to pay a specific sum or up to a maximum amount

3. Interest Rate: Specification of applicable interest rate and calculation method

4. Payment Terms: Details of repayment schedule and revolving nature of the facility

5. Events of Default: Circumstances that trigger immediate repayment obligation

Optional Sections

1. Security Provisions: Details of any collateral or security, used when note is secured

2. Draw Down Mechanics: Procedure for requesting and receiving funds

3. Representations and Warranties: Maker's declarations about their status and capacity

Suggested Schedules

1. Draw Down Request Form: Standard form for requesting advances under the note

2. Repayment Schedule: Table showing payment dates and amounts (if fixed)

3. Security Details: Description of any security or collateral (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


























Clauses























Industries

Bills of Exchange Act (Chapter 23): Primary legislation governing negotiable instruments including promissory notes in Singapore, setting out fundamental requirements for validity and enforcement

Contracts Act (Chapter 53): Foundational law governing contract formation, validity, and enforcement in Singapore, essential for the underlying contractual aspects of the promissory note

Moneylenders Act (Chapter 188): Regulates moneylending activities in Singapore, may be applicable if the promissory note involves licensed moneylenders or related financing arrangements

Civil Law Act (Chapter 43): Contains provisions affecting civil obligations and remedies, including those relating to contracts and commercial transactions

Evidence Act (Chapter 97): Governs the admissibility of evidence in legal proceedings, including requirements for documentary evidence which affects how the promissory note should be executed and maintained

Stamp Duties Act (Chapter 312): Determines stamp duty obligations for various instruments including promissory notes, specifying tax obligations and timing requirements

Limitation Act (Chapter 163): Sets time limits for bringing legal actions, including enforcement of promissory notes and debt obligations

Banking Act (Chapter 19): Regulates banking institutions and their activities, relevant if the promissory note involves regulated financial institutions

Securities and Futures Act (Chapter 289): May apply if the promissory note could be classified as a security, governing trading and securities regulations

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore that may affect the structuring and execution of financial instruments

Electronic Transactions Act: Governs the legal recognition and use of electronic transactions and signatures, relevant if the promissory note will be executed electronically

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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